How Does Employer Of Record Work?

An EOR becomes the legal employer in the host country and takes responsibility for everything related to local employment compliance. This includes issuing compliant contracts, registering the employee with tax and social authorities, running payroll, and ensuring that statutory benefits and contributions are correctly managed.

The client company remains in control of the employee’s day-to-day work, including assigning tasks, setting goals, and managing performance. The EOR’s role is focused on ensuring that everything behind the scenes, legal, tax, HR, and payroll, is properly handled. This model provides an efficient and compliant way to employ people in countries where the company does not operate directly.